YZJ Shipbldg SGD    Last:2.25    +0.05

Yangzijiangu -

YANGZIJIANG SHIPBUILDING (HOLDINGS) LTD.
(Company Registration No. 200517636Z)
(Incorporated in the Republic of Singapore on 21 December 2005)
(1) NEW SHIPBUILDING CONTRACTS SECURED BY THE GROUP
(2) OTHER INFORMATION ON CONTRACTS SECURED AND DELIVERED BY THE GROUP

The Board of Directors of the Company (the ?Board?) is pleased to announce that the Group had during the third quarter of 2007 after the announcing its results for the second quarter 2007 on 13 August 2007, secured shipbuilding contracts (the ?Contracts?) in respect of thirteen (13) container vessels with an aggregate contract value of US$409.7 million.

The Contracts are to be delivered progressively in 2010 and 2011, and will therefore not have a significant impact on the earnings of the Group for the financial year ending 31 December 2007.

Other information relating to contracts secured and delivered by the Group are as follows:

USD (in million) CGT* No. of Vessels
Contracts secured between 13
August to 30 September 2007
409.70 182,349 13

Contracts secured between January
to September 2007
2,880.62 1,272,281 73

Contracts delivered between January
to September 2007
273.84 140,175 11

Current contracts on hand 4,940.00 2,207,475 129

* CGT means Compensated Gross Tons. This measure refers to the comparative work content inherent in building the ship. It is based on the gross tonnage, which is modified by a compensation factor relating to the
complexity of the building process.

UBS AG, acting through its business group, UBS Investment Bank, acted as the Global Coordinator and Sole Bookrunner for the initial public offering of the shares of the Company.

By order of the Board
Ren Yuanlin (任元林)
Executive Chairman
8 October 2007

 

DBS Vickers

Riding on the crest of a megacycle

Buy (Initiating Coverage) S$2.43; Price Target : 12-Month S$ 3.04

Story: Yangzijiang is the largest private containership builder in China and among the top ten globally for containerships. Backed by a record orderbook of RMB35.8bn (or USD4.8bn), representing 9x its FY07 revenue, this underpins earnings visibility till FY10.

Point: Order book intake momentum remains strong; total contracts secured YTD hit RMB17.9bn or 1.5x the amount secured in 2006. The group is well positioned to benefit from the strong demand for bulk carriers and containerships, and to ride on the wave of shipbuilding orders flowing to China, which is gaining market share at the expense of Korean and Japanese shipyards.

Relevance: Initiate coverage with a BUY rating. Yangzijiangs FY09 earnings will capture the full impact of the new shipyard. The recent re-rating of regional shipyards, led to a doubling of P/E to 24x on FY08 earnings.

Chinese shipyards led the re-rating as it overtakes Japan as the second largest shipbuilder in the world in terms of order wins. We have imputed a target PE of 28x on FY09 earnings for Yangzijiang, which is in line with the industry average of Singapore and China-listed peers. This will give rise to a 12-month forward valuation of S$3.04, translating into an undemanding PEG of 0.6x on Yangzijiangs 3-year EPS CAGR of 58%. The stock will benefit as a new entrant of the new FTSE-ST index and liquidity flows from QDII.

 

Thank you YZJ!!!

You make my week!

Congrats to those who stayed with YZJ from last week pulled back and see the clear sky today!

 

SINGAPORE, Oct 8 (Reuters) - Shares of Yangjiziang Shipbuilding and SIA Engineering

Yangjiziang rose 6.6 percent to S$2.59 while SIA Engineering gained 2.5 percent to S$4.92 around 9:02 a.m. in Singapore.

The Singapore Exchange said on Friday that a new 30-stock STI will replace the current 48-stock index sometime in January next year.

 

This counter got a special mention by analyst to be the potential one during yesterday's Money Week.

So look out for for this fast craft on Monday after all sky is cleared now.

 

2.22~2.24 should be a great re-entry point.. at your own risk.

 

The most recent TP for YZJ is 2.39.

 

China Stocks Market Cap List (S$m)

 

1	Cosco Corp	13423.1
2	Synear Food	2846.3
3	China Hongxing	2396.8
4	China Energy	1879.3
5	Fibrechem	1783.9
6	Delong	1711.8
7	China Fishery	1624.4
8	China Sky	1570.9
9	Pine Agritech	1350.0
10	Sino Techfibre	1264.8
11	Sino-Environment	1094.1
12	Pac Andes	1010.7
13	Epure	920.2
14	China Milk	915.9
15	Jiutian Chemical	889.8
16	Celestial	833.8
17	Bio-Treat	780.5
18	China Sports	549.1
19	China Sun	538.8
20	SP Chemicals	431.5
21	China Essence	392.5
22	Hongguo	385.0
23	Sihuan Pharma	383.1
24	China Merchants	372.2
25	C&O	331.7
26	Pan Hong	331.2
27	C&G Industrial	311.2
28	Full Apex	286.3
29	Bright World	278.0
30	Longcheer	259.8

Still can't find YZJ in this top-30 list..

 

 

 

My humble opinion on the inclusion of YZJ in the newly restructure STI component is not really a big deal. Sorry if I have just shot down some with high hope on this matter. I am trying to be rationale and view this matter objectively.

1 Inclusion of counters in the STI is good but not good enough. Worldwide fund will notice of the component of STI. But they will not trade each stock as individually but trading this as a basket of stock, Index.

2 If ever the fund managers will to trade individual stocks of STI, the will choose the strongest and most stable one, the big ones I mean. DBS, UOB, OCBC, Keppel,CapitaLand, ST Engineering, SIA, SPH, etc. I think the fund will leave out smaller ones like YZJ, if they ever take notice of it.

3 STI is a very small mkt. To get attention from the global mkt is tough. Of course all knows the big ones, DOW, NASDAQ, NIKKEL, HANG SENG, etc.

My rationale thinking is that the inclusion of counters into the China PrimePartner Index and better than getting a inclusion in the STI. That Index will attract big fund from China, and we are talking about billions of dollars. And yes, YZJ is blessed that it is in that Index. And more blessing is that it has 50% doemstic earning from China, which is one of the criteria for the Chinese fund to invest.

What I see here is the benefits of counters from this QDII are the bigger counters in the PrimePartner Index. They are SYNEAR (one of my favourite), COSCO &YZJ. There are some smaller ones which did not get into my radar.

Another batch of counters that will benefit from the QDII approved funds are the counters that has big difference in valuation from their counterpart in HK. I think China Sun will be another one that will benefit.

 

Plain simple logic. All shares that newly included in an Index will spike up. The question is how much and how long.

 

 

Hi Pension, still remember when i post a buy call for Genting @ around 0.635? You said that counter will fall to around 0.50 or below. Right after that Genting hit to 0.715 after few days later. Maybe for this counter you still wrong or right!

 

Hi Pension. Which horizon you are in...this counter is correcting and may be corrected.

 

I also believe this counter would go further up now that its confirmed in ST component stocks and SSE if open high on monday would give a big boost too !

 

I think it still have a momentum to climb up, Pension.....The answer will know on Monday.

 

avoid this stock, cheong too high oredi, due for correction.

 

The Singapore Exchange (SGX) said on Friday that the revamped Straits Times Index <.STI> will include shares in Wilmar International , Yangzijiang Shipbuilding and Yanlord land Group .

This should give vestor more confident in vesting in YZJ.

YZJ cheong on Monday with the twin added turbo (QDII and STI)!!!

 

Hi Pinnacle, watch out for the gap at 228, which is about 16¢ from here. Might visit there to close gap. I may be wrong.

 

Yes... the sea is always rough... especially now in the deep blue sea...

there's no turning back now for me... can only cheong ahead.

 

 

Chng kay win liao lah. Push to price so high and drop like a stone. Those who follows the way up will get stuck now, unless he let go after a few cents profits. The BB trade in bulk. That few cents they made the last hour is enuf for the day liao. So my guess is they will start their happy hour sooner, now go home liao.

 

very very volatile...not for the faint hearted...I am a little shaky now...hehehe